STAMFORD, Conn., Aug. 9 -- Cenveo, Inc. announced its results today for the three and six months ended June 30, 2006. For the second quarter, the Company reported a net loss of $33.1 million, or $0.62 per diluted share, compared to a net loss of $10.6 million, or $0.22 per diluted share, in the second quarter of 2005. The second quarter 2006 results include the loss on early extinguishment of debt of $32.7 million, resulting from our debt refinancing, restructuring and impairment charges of $17.2 million, and the gain on sale of non-strategic businesses of $9.6 million, primarily relating to a secondary sale of an 8% interest in Supremex. Net sales for the quarter decreased to $357.9 million from $421.7 million in 2005, primarily due to the Company's decision to sell Supremex and close or sell several other non-strategic businesses. Non-GAAP net income totaled $8.4 million, or $0.16 per diluted share, in the second quarter of 2006. Non-GAAP net income excludes restructuring and impairment charges, gain on sale of non-strategic businesses, loss on early extinguishment of debt, equity income from affiliate and effect of tax reorganization. A reconciliation of net income to Non-GAAP net income for these adjustments is presented in the following tables. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, excluding restructuring, impairment, and other charges, gain (loss) on sale of non-strategic businesses, divested operations, stock compensation expense on the adoption of SFAS 123R, loss on early extinguishment of debt, and equity income in affiliate) in the second quarter of 2006 was $34.5 million compared to Adjusted EBITDA of $20.7 million in the same period last year, an increase of 67%. An explanation of the Company's use of Adjusted EBITDA is provided below. For the first six months, the Company reported net income of $79.1 million, or $1.47 per diluted share, compared to a net loss of $33.2 million, or $0.69 per share, in the same period in 2005. The results for the first six months of 2006 include restructuring and impairment charges of $30.7 million, the gain on sale of non-strategic businesses of $132.9 million, primarily relating to a sale of 71.4% interest in Supremex, and the loss on early extinguishment of debt of $32.7 million. Net sales for the first six months decreased to $784.6 million from $871.3 million in 2005, primarily due to the Company's decision to sell Supremex and close or sell several other non-strategic businesses. Non-GAAP net income totaled $18.9 million or $0.35 per diluted share in the first six months of 2006. Non-GAAP net income excludes restructuring and impairment charges, gain on sale of non-strategic businesses, loss on early extinguishment of debt, equity income in affiliate and effect of tax reorganization. A reconciliation of net income to Non-GAAP net income for these adjustments is presented in the following tables. Robert G. Burton, Chairman and Chief Executive Officer stated: "Our second quarter results reflect the success of having a clear and concise game plan that allows us to be responsive to both our customers and our cost structure. We remain committed to our strategy to reduce costs, divest non-core assets, and invest our capital resources into what we believe are higher growth print markets and cross-sell the full product offering of our portfolio. I believe that the momentum that we have built over the past 11 months continues to strengthen. Our envelope, forms and label segment continues to perform increasingly well and is enjoying strong backlogs and is producing solid operational improvement over budget and last year. Our commercial print segment once again showed dramatic operational improvement over the prior year as our consolidation efforts and sales focus on profitable sales are starting to yield significant results. These factors allowed us to improve adjusted EBITDA by 67% from the same period last year." Mr. Burton continued: "During the quarter the Company undertook several significant steps designed to position itself for future growth. We dramatically improved our capital structure by successfully tendering for our high-coupon senior notes and replacing them with lower-cost debt. This action will save the Company approximately $9 million a year in interest expense and provides a more flexible capital structure as we pursue future growth opportunities. Last month we also completed the acquisition of Rx Technology, a leading manufacturer of prescription labels. This acquisition strengthens our position in the high-growth label segment, and is expected to be accretive to earnings this year. This acquisition is already beginning to pay dividends as we now can offer Rx's existing customers the extensive platform of Cenveo's core products and services." Mr. Burton concluded: "As we enter the back half of the year, we remain focused on executing the turnaround plan that we implemented last September. Based on our current strong backlog and improved operating performance across all our businesses to date, I continue to remain very optimistic about the Company's prospects for the remainder of the year. We will also continue to look to grow the Company both organically and through strategic acquisitions that are accretive to earnings. We feel very good about our core businesses today and we are continuing discussions with other print businesses as we seek to expand our product portfolio to provide more opportunities to our customers."